The current state of the home mortgage industry can be very confusing for average people. Sensational media reports have made it look like mortgages and refinancing are no longer available to average people.

Nothing could be farther from the truth; it is still fairly easy for an average person to get a mortgage. Many mortgage companies are eager to lend and are still actively advertising for new customers.

Indeed it is now something of a buyer’s market in the mortgage industry because business has fallen off. Mortgage companies are willing to make deals and have some really good offers for those who are looking for mortgages.

Low Interest Rates

The biggest advantage to today’s mortgage market is the low interest rates. Interest rates are now lower than they’ve ever been on ordinary 20 and 30 year mortgages. This means that those mortgages are cheaper than they have been in quite awhile.

It is possible for an ordinary person to get a mortgage with a historically low 4% or 5% interest rate. With a traditional fixed rate mortgage this interest rate will be locked in for the life of the mortgage.

Some Mortgages Will Be Hard To Get

Even though average mortgages are still fairly easy to get some mortgages will be harder to get in today’s mortgage market. Sub prime mortgages which are offered to people with low credit scores are harder to get because many lenders have been loosing money on them. This means that some people with bad credit will have a harder time getting a mortgage.

Other non traditional mortgages such as Adjustable Rate Mortgages (ARMS), interest only mortgages and 15 year mortgages might be harder to get as well. The market and many mortgage lenders are now leery of non traditional mortgages.

Those looking for a traditional mortgage should have a fairly easy time getting a mortgage. Persons looking for something different might not be able to find what they want.

Tax Credits

The federal government is trying to encourage home buying with some really good tax credits for persons who take out mortgages to buy houses. These credits make quite a bit of money available to people who want to buy homes.

An $8,000 tax credit will be available to first time home buyers for all of 2010. Persons who have never owned a home or haven’t owned a home for several years will be able to get this credit. This is a nonrefundable tax credit which means the federal government is giving all new home buyers $8,000.

Existing home buyers who buy another house will be eligible for a $6,000 tax credit for all of 2010. This is also a nonrefundable tax credit which means that those who get it will get $6,000 to buy a home.

Today is an excellent time to buy a home and get a mortgage. Interest rates are lower and tax credits make large amounts of money available for home purchase.